ST. PAUL, Minn.--(BUSINESS WIRE)--Securian Financial has entered the $41.5 billion1 bank distribution channel for individual annuities with customized products and a new sales team knocking on doors to share the insurer’s value proposition.
“Our history as a highly rated insurer2 that operates with a conservative, long-term perspective makes us an attractive option for banks looking to diversify their mix of annuity carriers,” said Chris Owens, Securian Financial’s national sales vice president for retail life insurance and annuities.
New sales team
To kick-start its efforts, Securian Financial hired Kate McLees Hannon and Karl Krause as regional sales vice presidents. Both have strong track records in the bank channel, with a combined 47 years of industry experience. Securian Financial plans to hire four more regional sales vice presidents for the bank channel by year’s end.
Products on shelf and more in works
Securian Financial will offer its complete portfolio of individual annuities to banks. This includes fixed, indexed, variable and immediate income annuities, as well as annuities offering accelerated death benefit features for clients looking to ease the potential future burden of care for chronic or terminal illness. Securian Financial is also developing specific annuity products for banks.
“We know through our conversations with banks that they have many risk-averse clients who traditionally purchase CDs. Annuities are an increasingly attractive alternative for bank advisors interested in generating a higher return on their clients’ investments. We believe there is opportunity here both with products we currently have available as well as those in the works,” said Owens.
Large, growing market
Banks are a growing source of distribution for annuities. According to LIMRA, bank channel individual annuity sales in the U.S. were $41.5 billion in 2018, an 18% increase over 2017 sales.1
Attractive carrier
Four Securian Financial annuities issued by its affiliated insurance companies made Barron’s 2018 list of “The 50 Best Annuities.”3
Securian Financial’s immediate income annuity, underwritten by Minnesota Life Insurance Company, swept its category. Barron’s ranked it the best product in the three varieties of immediate income annuities the publication researched: immediate life only annuity, immediate 10 year-certain annuity and immediate cash installment refund annuity.
Barron’s also ranked Securian Financial’s MyPath™ Ascend 2.0 variable annuity, underwritten by Minnesota Life Insurance Company, as the third best product in the variable annuity category.
Strong company
Securian Financial is the 8th largest life insurance company in the United States based on total life insurance in force.4 The company had $78.5 billion in assets under management at the end of 2018 and ranked #462 on the 2018 Fortune 500.5
Securian Financial’s Comdex ranking—an average percentile of a company’s ratings from independent rating agencies that analyze the financial soundness and claims-paying ability of insurance companies—is 95. This puts Securian Financial in the top 5 percent of companies with a Comdex ranking.6
ABOUT SECURIAN FINANCIAL
At Securian
Financial, we’re here for family. And we’re here because of it.
We’re guided by our purpose: helping customers build secure tomorrows.
Since 1880, we’ve been building a uniquely diversified company that has
outlasted economic ups and downs while staying true to our customers.
We’re committed to the markets we serve, providing insurance, investment
and retirement solutions that give families the confidence to focus on
what’s truly valuable: banking memories with those who matter most.
1. LIMRA, U.S. Individual Annuities Sales Participants Report, Q4 2018.
2. All ratings information as of March 2019. These ratings are assigned to the following Securian Financial Group member companies: Minnesota Life Insurance Company and Securian Life Insurance Company. To learn more about Securian Financial’s strength and ratings, visit securian.com/ratings.
3. Barron’s, “The 50 Best Annuities,” July 21, 2018.
4. Eighth largest insurance company based on 2017 total life insurance in force for Minnesota Life Insurance Group, A.M. Best’s Statistical Study, U.S. Total Life, July 23, 2018.
5. Fortune 500 ranking as of May 2018 based on 2017 total revenue.
6. The Comdex ranking is an average percentile of a company’s ratings, making it easier to compare companies. Comdex looks at companies rated by independent rating agencies then ranks more than 200 of those companies on a scale of 1 (lowest) to 100 (highest), based on their agency ratings. A company must be rated by at least two rating agencies to receive a Comdex ranking. For more information about Comdex rankings, visit www.ebixlife.com. This ranking is current as of March 2019 and subject to change.
An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Please consult a tax advisor for specific information. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals. Variable annuities have additional expenses such as mortality and expense risk, administrative charge, investment management fees and rider fees. Variable annuities are subject to market fluctuation, investment risk and loss of principal.
Products may not be available in all states and features may vary by state. Additionally, not all products and features are available from all firms.
The guarantees are subject to the financial strength and claims paying ability of the issuing insurance company.
Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues.
This is a general communication for informational and educational purposes. The materials and the information are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. If you are seeking investment advice or recommendations, please contact your financial professional.
Securian Financial is the marketing name for Securian Financial Group, Inc. and affiliates. Minnesota Life Insurance Company and Securian Life Insurance Company are affiliates of Securian Financial Group, Inc.
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